Naver FY2025 Revenue Hits KRW 12.04 Trillion on Ad Growth

Seoul, South Korea - Naver Corp posted strong annual revenue of KRW 12 trillion (US$9,117.4 million) for 2025, marking a 12.1 percent jump from the prior year.

Operating profit climbed 11.6 percent to KRW 2,208.1 billion (US$1,672.8 million).

The figures were released on Friday and reflected growth across the company's advertising and commerce operations.

In the fourth quarter ending December 31, Naver delivered revenue of KRW 3,195.1 billion (US$2,420.5 million) and operating profit of KRW 610.6 billion (US$462.6 million), posting year-over-year gains of 10.7 percent and 12.7 percent, respectively.

The operating margin for the quarter stood at 19.1 percent, compared with 18.8 percent in the same period of 2024.

Performance varied across the company's business segments.

The search platform division generated KRW 1,059.6 billion (US$802.7 million) in revenue, a 0.5 percent decline from the previous year, though the company stated that, excluding the impact of settlements related to LY Corporation, the segment would have grown 1.8 percent.

Commerce revenue surged 36.0 percent to KRW 1,054.0 billion (US$798.5 million), fueled by Smartstore and global consumer-to-consumer operations.

The fintech division reported revenue of KRW 453.1 billion (US$343.3 million), up 13.0 percent, and total payment value of KRW 23.0 trillion (US$17.4 billion), up 19.0 percent.

The contents division saw revenue fall 2.3 percent to KRW 456.7 billion (US$346.0 million), while enterprise revenue declined 3.2 percent to KRW 171.8 billion (US$130.2 million), though the company indicated the enterprise segment would have grown 16.6 percent absent LY-related settlements.

Net profit for the fourth quarter plunged 68.0 percent to KRW 164.6 billion (US$124.7 million).

The company attributed the decline to year-end goodwill impairment losses.

Operating expenses rose 10.3 percent to KRW 2,584.4 billion (US$1,957.9 million), with development and operations costs increasing 10.2 percent due to expanded headcount and marketing expenses growing 12.9 percent following commerce promotional activities.

Chief Executive Soo Yeon Choi outlined plans to invest in content, artificial intelligence infrastructure, and its N-Delivery service.

The company set a target of handling 50 percent of its gross merchandise volume through the expedited delivery service within three years.

Naver announced a shareholder return policy for 2025 through 2027 under which it would distribute 25 to 35 percent of the average consolidated free cash flow from the preceding two years.

Subject to approval, the company plans to pay an annual dividend of KRW 393.6 billion (US$298.2 million) in April, equivalent to KRW 2,630 (US$1.99) per share.

Beginning in 2026, the company will reorganize its revenue reporting into three categories: Naver Platform, which includes advertising and services; Financial Platform; and Global Opportunities, covering consumer-to-consumer commerce, content, and enterprise operations.